
The buyer needs you to have the minimum down payment to be eligible, and then they can apply for a five per cent or ten per cent shared equity mortgage with the Government of Canada. The buyer’s maximum qualifying income can be no more than $120,000 and their total borrowing is limited to four times the qualifying income.
A shared equity mortgage is where the government shares in the upside and downside of the property value. The First-Time Home Buyer Incentive launches September 2, 2019.
How do you know how much you have to pay back?
You can repay the Incentive at any time without a pre-payment penalty. You have to repay the Incentive after 25 years or if the property is sold. The repayment of the Incentive is based on the property’s fair market value.